CEO’S REPORTPRESENTED BY:

Paula Gold-WilliamsPresident & CEO

September 30, 2019

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Former Trustee, Mr. Derek Howard and I attended

THIS MONTH’S TOPICS

• CPS ENERGY BOARD AGENDA INSIGHTS

• COMMENT PERIOD

• ELECTRIFICATION – FALL SA SYMPOSIUM

• UPCOMING TOPICS

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AGENDA INSIGHTS – 1 of 3

ITEM 7A – ADDITIONAL UPDATES

• ERCOT SUMMER 2019 UPDATE:❑ Guest Presenter:

❖ Bill Magness, President & CEO of ERCOT

❑ Highlights:❖ How the market generally works❖ What were the challenges this summer❖ When additional capacity investments are expected

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AGENDA INSIGHTS – 2 of 3

ITEM 7B – COST SAVINGS, PREVIEW CONSENT AGENDA ITEM

• OPERATIONAL – ADVANCED CABLE TESTING❑ Improving the way we test power lines, which increases

our accuracy & lowers our costs

ITEM 7C – FINANCIAL UPDATE

• STRONG PERFORMANCE ❑ Continued Cost Control, including reduced Debt Costs❑ Optimized Wholesale Revenues

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AGENDA INSIGHTS – 3 of 3

ITEM 7D – RENEWABLE NATURAL GAS

• NATRUAL GAS❑ Summary Preview of a New Process❑ Designed to lower gas pipeline carbon

ITEM 10 – ENERGY STORAGE UPDATE

• EMERGING TECHNOLOGY❑ Guest Presenter:

❖ Judy McElroy, CEO of Fractal❑ Will Provide Some Industry Insights

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300-900 MEGAWATTS (MW)

300-500 MEGAWATTS (MW)

10-50 MEGAWATTS (MW)

CPS ENERGY NEWSROOM, JULY 10, 2019

RIVARD REPORT, JULY 10, 2019

FLEXPOWER BUNDLE COMPONENTS FOR DISSCUSION

FLEXIBLE PATH COMMENT PERIOD STATUS UPDATE

7This is how we save our customers money & add value.

SECURITY

AFFORDABILITYRELIABILITY ENVIRONMENT

RESILIENCY SAFETY

FLEXIBLE PATH COMMENT PERIODKEY CONSIDERATIONS CONVEYED

INPUT CHANELS:

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• PRESENTATIONS

• WORK SESSIONS

• + OTHERS AS HELPFUL

FLEXIBLE PATH COMMENT PERIODMAJOR STEP FORWARD

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SYMPOSIUM IN S.A. THIS WEEK!

ELECTRIFICATION

PARTNERSHIP: CPS Energy & EPRI

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UPCOMING TOPICS

• PROGRAM PROGRESS❑ FLEXPOWER BUNDLE - continues❑ FLEXSTEP

… more to come …

Thank You

GLOSSARY / DEFINITIONS

• CAAP Climate Action and Adaptation Plan• CEO Chief Executive Officer• CFO Chief Financial Officer• CRU Customer Response Unit• EPRI Electric Power Research Institute• FY Fiscal Year• M Million• MW Megawatts• PFC SA Energy Acquisition Public Facility

Corporation• S.A. San Antonio• RFP Request for Proposal

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